Yesterday Steve Ballmer told the Financial Times that now is a great time to strike a deal with Yahoo. Citing that both companies are going through a transition — Microsoft appointing someone to run their online business and yahoo searching for a new CEO — making it a good time to tie the knot.
“We now have someone in place running our online business, and Yahoo’s out looking for a CEO,” Ballmer said. “If a search deal is to be made, it’s probably to be made in the interim period for new leaders in both places.”
I like Yahoo, which is why I keep hoping there is a way they can be relevant again without Microsoft. It's kinda like when you see a really cute girl dating a thug — you wonder why. Yahoo is a cute girl and I think they deserve better than Microsoft.
Yahoo has tried to save themselves a few times and they keep failing. Frankly, there is no one out there big enough for the undertaking of saving Yahoo. Microsoft might be their only real hope.
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Yahoo
This morning I was working on a project and wanted some stock photography. So, of course, I hit the search engines. I found there very odd paid ad for MSN/Live Search.

I think I can speak for all of us when I say, WTF?
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MSN
Microsoft has launched SearchPerks (link: www.GetSearchPerks.com)to bribe users to give users the chance to win prizes for using Microsoft’s Live search engine. A user can win up to 25 tickets per day for using the engine.
But to add further insult to injury, the service only works on Internet Explorer. Yes, that’s right, if you go to the link using any other browser, you are instructed to launch IE. Maybe this insular attitude is part of the reason they have not made strides with search?
IWON has been using this strategy for years, but has gotten no where. IWON still offers prizes but uses Ask.com as the search provider now.
Instead of spending money on marketing ideas like this, maybe they could spend that money hiring talent to build a better engine? Just a thought. Searchers use engines that offer good results, not gimmics.
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MSN
Microsoft has made an "unsolicited" $45 billion bid for Yahoo! in a cash and stock swap. This was a deal a long time coming and frankly, isn’t a surprise for anyone in the industry. Microsoft and Yahoo have been seen flirting at the dance before.
Why now? Both are concerned with Google’s ever increasing dominance in the search space. This purchase would be a merging of armies to take on Google. And considering Yahoo’s inability to gain traction after their executive reorg last year, its perfect timing on Microsoft’s part.
Here’s the thing: If Yahoo wants to sell, this is the best deal they will ever get. Other than Google, Microsoft is the only other company rich enough to buy Yahoo. Google would never buy them and Microsoft would never offer a true merger among equals. Yahoo-Soft? Micro-hoo? No way.
But, should they do it?
In order to beat an opponent like Google, you have to be ready to fight like hell. Yahoo stopped fighting 3 years ago. Microsoft, on the other hand, loves a good fight.
This bid might have been unsolicitied, but Yahoo has already considered this option. It’s already been throughly discusssed on how to approach a bid by Microsoft. In fact, it says so in their press release:
SUNNYVALE, Calif., Feb 01, 2008 (BUSINESS WIRE) –Yahoo! Inc. (Nasdaq:YHOO), a leading global Internet company, today said that it has received an unsolicited proposal from Microsoft to acquire the Company. The Company said that its Board of Directors will evaluate this proposal carefully and promptly in the context of Yahoo!’s strategic plans and pursue the best course of action to maximize long-term value for shareholders.
The last sentence says it all. Get ready for a sale.
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Yahoo
Microsoft has launched a new front end for it’s search engine, Live.com. Called Left vs Right, it is reminiscent of Ms. Dewey, a former personification of Live.com.
It is a funny take on political talk shows, with two commentators primed to argue with each other based on the search term you enter. The topics are limited, and as you begin to type in a search, it shows a small drop down box that shows what searches it can provide. The timing for this is perfect as political and issue-based searches are increasing due to the current campaign season.
I still liked Ms. Dewey better, mostly because she was sassy. I like a little attitude with my search engines.
I don’t know how much Microsoft spend on Left vs Right, but with their falling market share quarter after quarter, they may want to invest that money into making a better search engine. Just a thought.
Special thanks to Lara for the tip on this one. See Lara, I told you I’d do it!
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Ask.com gets a new CEO. Ask is doing some great things right now. I hope this does not slow down their progress.
Bill buys Fast. Microsoft said this is to fend off competition from Oracle and IBM. It’s not. Everything Microsoft does in search is about Google. All the time, every time.
Critics rail Wikia. They were right to call Wikia incomplete. Founder Jimmy Wales said Wikia would need 2 years to reach any real quality. In the search realm, 2 years might as well be 20.
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Ask,
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Search